An Undertaking by a Surety to Protect an Employer Against

question 75

Multiple Choice

An undertaking by a surety to protect an employer against the dishonesty of an employee is a(n) :

• A)performance bond.
• B)fidelity bond.
• C)judicial bond.
• D)official bond.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating how much contributes towards covering fixed costs and profit.

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales.

Fixed Costs

Expenses that remain constant regardless of the level of output or sales, including rent, wages, and insurance costs.

Margin of Safety

The difference between actual or expected sales and sales at the break-even point. It measures how close a company is to not covering its fixed costs.